Water Rate Increases: Why are they Happening?
How much?!? That is basically everyone’s first thought when looking at another water bill that seems way too high to be true. That is something that many of us face here in San Diego County almost every month and yet many of the cities are proposing an increase of their water rates for next year. We all understand with the years going by and the increasing costs of products due to inflation, but why are the water rates going up and where exactly does the money collected go to? To understand why this is happening we can take a look at one of the proposed rate increases from Oceanside, CA.
The rate increase that Oceanside is proposing is a 6% increase starting in 2024. They have broken down exactly what each dollar collected goes towards. Of each dollar, $0.41 is dedicated to capital improvements, which will support the enhancement and maintenance of the city’s water infrastructure, ensuring its long-term reliability and resilience. Another $0.35 is allocated to water purchases, securing the procurement of water from various sources to meet demand and maintain a consistent supply. Additionally, $0.13 is used for water operations and delivery, which covers the day-to-day functions of the water utility, including treatment, distribution, and maintenance. Administrative costs, totaling $0.10, are accounted for to manage the general operation of the utility, including staffing, customer service, billing, and other essential functions. Lastly, $0.01 is reserved for debt servicing, ensuring the responsible repayment of any outstanding financial obligations. This kind of accounting info is useful but not limited to Oceanside. All utilities and businesses face expenses that any consumer has to cover for the convenience of services. Our company, One Water Systems, can help in many ways to understand the need for water and help clean it.
A lot of the time we don’t understand why rates increase but sometimes it really is essential, especially with the older our systems get and the rate of inflation. The older systems get, sometimes they don’t do the jobs that need to be done to keep our city water safe. This is why companies like ours exist. We are here to provide you with peace of mind when it comes to turning on every single faucet throughout your entire home. We clean every ounce of water that comes from the city that makes its way into your home. If that is something that you think you may want to consider learning more about, give us a call at (760) 994-4795 or visit us on our website at www.onewatersystems.com.
